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SILVERSTONE
ANNOUNCES UNDERWRITTEN
$50 MILLION FINANCING
November 7, 2007
Silverstone Resources Corp.
(“Silverstone”) is pleased to announce it has entered into an
agreement for a private placement with a syndicate of underwriters led by
Scotia Capital Inc. and including PI Financial Corp. pursuant to which the
underwriters have agreed to purchase 17,250,000 common shares of Silverstone
at a price of $2.90 per share for aggregate gross proceeds of approximately
$50.0 million. Capstone Mining Corp. has indicated that it will
purchase 3,577,670 common shares of Silverstone in the offering. The
underwriters also have been granted an option to purchase an additional
3,450,000 common shares of Silverstone at the issue price for additional
gross proceeds to the company of $10,005,000. The offering is being
completed on a private placement basis subject to certain conditions
including, but not limited to, the execution of a definitive underwriting
agreement and the receipt of all necessary approvals including the approval
of the TSX Venture Exchange. The offering is expected to close on or
about November 27, 2007.
Net proceeds from the offering will be used to repay
debt and for general corporate purposes including potential acquisitions of
silver production.
The securities being offered have not,
nor will they be registered under the United States Securities Act of 1933,
as amended, and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons absent U.S. registration or an
applicable exemption from the U.S. registration requirements. This
release does not constitute an offer or sale of securities in the United States.
ABOUT SILVERSTONE
Silverstone is a Canadian based public silver mining
company with 100% of its revenue from silver production. More
information is available online at: www.silverstonecorp.com.
For further information about the Company, please
contact:
Chris Tomanik, Telephone: (604) 637-8151 / Facsimile:
(604) 688-2180
Email: ctomanik@silverstonecorp.com
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains “forward-looking
information” that is based on Silverstone’s current expectations,
estimates, forecasts and projections. This forward-looking information
includes, among other things, statements with respect to Silverstone’s
mineral discoveries, plans, outlook and business strategy.
The words “may”, “would”, “could”,
“should”, “will”, “likely”,
“expect,” “anticipate,” “intend”,
“estimate”, “plan”, “forecast”,
“project” and “believe” or other similar words and
phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
Silverstone’s actual results, level of activity, performance or
achievements to be materially different from those expressed or implied by such
forward-looking information. Such factors include, but are not limited to:
projected sales or production rates; uncertainties related to drilling
results; the ability to raise sufficient capital to fund exploration; changes
in economic conditions or financial markets; changes in prices for costs;
litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments; technological or operational
difficulties or inability to obtain permits encountered in connection with exploration
activities; and labor relations matters.
This list is not exhaustive of the factors that may
affect our forward-looking information. These and other factors should be
considered carefully and readers should not place undue reliance on such
forward-looking information. Silverstone disclaims any intention or
obligation to update or revise forward-looking information, whether as a
result of new information, future events or otherwise.
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